For the current quarter, from July 1 to September 30, 2024, SSY accounts are offering an interest rate of 8.2% per annum, compounded annually. This rate, which is reviewed quarterly, remains one of the highest among small savings schemes in the country.
Financial experts have calculated potential returns based on different investment scenarios. For instance, if parents of a 5-year-old girl invest ₹1.2 lakh annually over 21 years at the current interest rate, they could potentially accumulate around ₹55.61 lakhs at maturity. This sum would include their total investment of ₹17.93 lakhs plus an estimated ₹37.68 lakhs in earned interest.
The SSY scheme also offers significant tax benefits. An official statement from the Ministry of Finance explains, “Sukanya Samriddhi Yojana enjoys ‘Triple E’ (Exempt-Exempt-Exempt) tax benefit is available on investments made in this. Investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum cap of ₹1.5 lakh. The interest that accrues against this account which gets compounded annually is also exempt from tax under Section 10 of the Income Tax Act. The proceeds received upon maturity/withdrawal are also exempt from income tax.”
One of the key features of the SSY is its long-term nature, with accounts maturing after 21 years or when the girl turns 18, whichever is later. This extended investment period is designed to build a substantial corpus for the child’s future needs.
While the scheme offers security and high returns, it’s important to note that it comes with certain restrictions. Partial withdrawals are allowed under specific circumstances, but loans cannot be taken against SSY deposits. However, the scheme’s government backing provides assurance to investors about the safety of their funds.
